Submitted

Wed, Mar 26th 2014 06:40 pm

Scammers
prey on seniors or college students by impersonating tax authorities to obtain
personal information

With
this year's tax deadline less than one month away, Attorney General Eric T.
Schneiderman today offered New Yorkers tips to avoid falling victim to tax-prep
scams. The Internal Revenue Service has already received thousands of reports
this year of various scams.

The
attorney general also asked taxpayers to notify his office of any suspected
fraudulent schemes designed to steal personal and financial information from
consumers.

"Tax
season is stressful enough. New Yorkers trying to file their taxes on time
should not also have to worry about being ripped off by tax scammers," Schneiderman said. "Taking advantage of vulnerable people in this tough
economy is shameful. That's why my office is helping to provide New Yorkers
with the information they need to make sure they don't get ripped off by scam
artists."

The
attorney general's office has recently become aware of a specific scam
targeting first-generation New Yorkers. In one instance, the scammer said he
was from the IRS and claimed the victim owed thousands of dollars in fines for
failing to pay taxes on money sent to his wife overseas - something that was
not required. The phony caller also demanded the victim's Social Security
number and threatened him with deportation if he failed to pay the fines.

Consumers
should be wary of any requests for personal information over the phone.
Legitimate government agencies will not threaten deportation.

Each
year, the office of the attorney general receives complaints from consumers
about tax preparation schemes. Some scammers prey on seniors or college
students by impersonating tax authorities in an attempt to obtain personal
information used to steal people's identities. Others have even gone to the
extreme of using "spoofing technology" to make their caller ID numbers come up
to look like they are from the IRS.

In
an effort to help New Yorkers avoid tax-themed scams, the attorney general's
office offered the following tips:

•The IRS and
legitimate government agencies never demand payment by phone;

•If you owe
money, you will receive a legitimate notice in writing that identifies
the agency and the reason you owe money;

•Do not give
out personal information, including your Social Security number or bank account
information, to telephone callers;

•Legitimate
government organizations will never threaten arrest or deportation for failure
to pay a debt.

The
following suggestions will help consumers file their tax returns safely:

•If you use a
tax-preparation service, use only established and recognizable companies;

•Check the
tax preparer's qualifications and history through the Better Business Bureau (www.bbb.org);

•Ask for a
written estimate of all fees; avoid those who base their fees on a percentage
of your refund;

•Make sure
the tax preparer is accessible, even after the April due date;

•Never sign a
blank return;

•Review the entire
return before signing;

•Make sure
the preparer signs the tax form and includes a Preparer Tax Identification
Number;

•Consumers
should also beware of refund anticipation loans and refund anticipation checks.
RALs are often marketed as "instant" or "24-hour" refunds, but
are actually high-cost loans that come with fees and interest that reduce the
amount of any refund. New York State's General Business Law section 372, known
as the Consumer Bill of Rights regarding Tax Preparers, requires RALs to be
marketed as loans - not refunds. RACs are temporary bank accounts established
on behalf of a taxpayer into which a direct-deposit refund can be received - but
these also come with fees that will reduce the consumer's refund. The tax
preparer must give the consumer a written disclosure that explains:

•That
consumers are not required to take out a refund anticipation loan or refund
anticipation check in order to receive your tax refund.

•The amount
of fees and interest consumers will have to pay for a refund anticipation loan
or refund anticipation check.

•The amount
consumers will receive after the fees and interest are deducted.

•The annual
percentage rate of interest that consumers will be charged.

•The amount
the refund will be without a refund anticipation loan

Consumers
can avoid the costs of refund anticipation loans and checks by filing their
return electronically and having refunds mailed or directly deposited into
their own bank accounts.

The
attorney general also reminds New Yorkers there are Volunteer Income Tax Assistance
sites where consumers can get their tax returns prepared free of charge. For
more information about how to qualify and identify VITA location sites, go to www.irs.gov.

Consumers
whose income is $57,000 or less may qualify for "FreeFile" and can use free tax
preparation and e-filing software. Information on free e-filing is available
at: www.tax.ny.gov.

Schneiderman
is urging New Yorkers to be vigilant consumers and to report instances of fraud
to his office. Consumers who feel they've been victims of any tax preparation
scams are urged to file complaints by visiting the
office's website or calling 1-800-771-7755.